Boeing (BA) issued a mixed first-quarter earnings report, beating on revenue but missing on profit. The company also said it would ramp up production of its 737 Max jets despite a recent production hitch.
For the quarter, Boeing reported revenue of $17.92 billion, up 28% from a year ago and beating estimates of $17.43 billion, as the aircraft maker said demand for its planes had increased. Boeing’s adjusted EPS loss for the quarter of $1.27 was above Street’s estimate of $0.97.
“We delivered a strong first quarter and are focused on stability for our customers,” Boeing CEO Dave Calhoun said in a statement. “We are making progress through the recent supply chain disruptions, but remain confident in the targets we have set for this year, as well as longer term. Demand is strong in our key markets and we are ramping up investments to advance our development programs and innovate our strategic capabilities for our customers and for our future.”
The company reaffirmed its earlier guidance of $4.5 billion to $6.5 billion in operating cash flow and $3.0 to $5.0 billion in free cash flow (non-GAAP) for the year .
Boeing also reaffirmed its earlier forecast for the 737 Max this year, expecting 400 to 450 deliveries this year, and said it would increase production of the 737 to 38 planes per month. It comes after the aircraft maker suffered a setback with its 737 Max production in mid-April, warning that a problem with multiple supports in the fuselage would affect deliveries.
“We will work diligently to rework affected aircraft in production and in storage to ensure each meets our advance delivery standards,” Calhoun said in a memo to employees today. “This effort will impact the delivery schedule over the coming months.”
Calhoun previously said the issue would delay production by just a few weeks. Boeing’s current backlog of 737 planes stands at 4,219 planes, according to Boeing’s website.
Boeing also said today that the 787 Dreamliner program is producing three planes per month with plans to increase production to five per month in late 2023, and 10 per month in the 2025/2026 period. Boeing’s 787 Dreamliner faced a delivery delay in February as the company had to halt deliveries due to a problem with a fuselage component. The issue was resolved in early March after the aircraft manufacturer responded to concerns raised by the FAA regarding the Dreamliner’s forward pressure bulkhead.
Speaking of the Dreamliner, in March Boeing landed a big contract with Saudi Arabia, as Brian Sozzi of Yahoo Finance first reported. Boeing has secured an order for up to 121,787 from two Saudi airlines – state-owned Saudi Arabian Airlines and new national player Riyadh Air. A total of 78 aircraft are considered firm orders, while 43 are call options. Of the 121 orders, 72 are from Riyadh Air.
Based on the 787’s list price of around $338 million, the deal could be worth up to $40 billion.
“It’s significant,” Calhoun told Yahoo Finance of the deal.
Boeing previously reported first-quarter deliveries fell from 95 to 130 a year ago, with 113 737 Max, 11 787, four 777s and one 767 and 747.
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Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on instagram.
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